http://subs.zinester.com/10981 News & Views to keep yourself updated on the Legal Issues in the Indian Capital Market & Direct Taxes in India en http://archives.zinester.com/10981/111652.html?rss=1 Highlights of the Mid-Term Reveiw of the Annual Policy 2006-07

  * Repo Rate increased to 7.25% from 7.0%
  * Reverse Repo Rate, Bank Rate & CRR kept unchanged.
  * GDP growth forecast at 8.0% during 2006-07 (against earlier estimates of
    7.5%-8.0%)
  * Inflation to be contained within 5.0%-5.5% during 2006-07.
  * Fresh issues of Central Government securities to be included in 'When
    issued' trading.
  * Scheduled commercial banks & primary dealers allowed to cover their short
    positions in Central Government securities within five trading days.
  * Resident individuals would be free to remit up to US$ 50,000 per financial
    year as against the earlier limit of US$ 25,000.
  * 100% of foreign exchange earnings can be retained in Exchange Earners'
    Foreign Currency (EEFC) accounts.
... ]]> 111652 Tue, 31 Oct 2006 17:33:44 MSK http://archives.zinester.com/10981/108141.html?rss=1 The SEBI has vide a circular (http://www.sebi.gov.in/circulars/2006/
mrdcir0132006.html) issued late on 26th September, 2006 postponed the date for
mandatory requirement of PAN No. for operating demat accounts (dematerialised
shares in the depository system) to 31st December, 2006.

I shall be posting a more detailed version of this circular tomorrow (28th
Sept. 2006)

Full Text (http://www.sebi.gov.in/circulars/2006/mrdcir0132006.html) is
available on SEBI's website.





... ]]> 108141 Wed, 27 Sep 2006 19:57:11 MSD http://archives.zinester.com/10981/107430.html?rss=1 Two notifications dated 14th Sept., 2006 cover the electronic filing of forms
and documetns that has become mandatory from 16th Sept., 2006.

The first notification, GSR ( http://archives.zinester.com/10981/107430/
161551_TheGazetteofIndia_GSR556E.pdf ) 556(E) ( http://archives.zinester.com/
10981/107430/161551_TheGazetteofIndia_GSR556E.pdf ) is the Companies (Third
Amendment) Regulations, 2006 amends regulations 25 and 31 of the Companies
Regulations, 1956 with effect from 14th Sept., 2006

The new regulation 25 & 31 allow a person to inspect documents, both physical
and electronic documents, after payment of the prescribed fees.

Full Text (pdf) of Notification GSR 556(E) ( http://archives.zinester.com/10981
/107430/161551_TheGazetteofIndia_GSR556E.pdf )

... ]]> 107430 Wed, 20 Sep 2006 18:56:09 MSD http://archives.zinester.com/10981/100982.html?rss=1 The due date for filing of returns for all other than salaried individuals &
HUF is extended to 31st October, 2006; from 31st July, 2006.

In addition, returns can now be designated post offices. The full list (http://
www.incometaxindia.gov.in/List_postoffice.asp) of post offices that have
started accepting returns from 26 July, 2006 is here (http://
www.incometaxindia.gov.in/List_postoffice.asp). Use this link (http://
www.incometaxindia.gov.in/search_post.asp) to search for post offices near you.

More updates on the Credit Policy Review to follow.





... ]]> 100982 Tue, 25 Jul 2006 14:39:47 MSD http://archives.zinester.com/10981/90108.html?rss=1 The effective service tax rate of 12.24% is applicable from 18th April 2006,
since that is the day on which the Finance Bill 2006 was assented to by the
Hon. President.
A gist of the slew of service tax notifications issued today (though these are
dated 19th April 2006) is here. All these notifications are effective from 19th
April, 2006.

 1. The rate of interest for delayed service tax payment is 13% p.a. [
    Notification No. 8/2006 (http://www.servicetax.gov.in/servicetax/
    notifications/notfns-2k6/st0806.htm)]
 2. Service tax to be payable, even if any taxable service is provided from any
    other country, but is received in India [Notification No. 9/2006 (http://
    www.servicetax.gov.in/servicetax/notifications/notfns-2k6/st0906.htm)]. The
    clause, prior to this amendment, did not specify the place of providing or
    receiving the taxable service. It refered to the person providing the
... ]]> 90108 Thu, 20 Apr 2006 17:06:17 MSD http://archives.zinester.com/10981/90077.html?rss=1 The Finance Bill 2006 received the Hon. President's assent yesterday (19th
April, 2006).

The immediate implication of this is that the effective rate of Service Tax is
enhanced to 12.24%; including education cess. This new rate, in my opinion,
would be effective from the date the same is notified.

Stay tuned here for updates on the notifications.







... ]]> 90077 Thu, 20 Apr 2006 11:40:05 MSD http://archives.zinester.com/10981/84327.html?rss=1 Economic Overview

  * Growth rate in 2004-05: 7.5%; while manufacturing sector grew at 8.1%.
  * Advanced Estimates indicate that the GDP growth rate is likely to be 8.1%
    with the manufacturing sector galloping away at 9.4% & agricultural growth
    up at 2.3%.
  * Gross Domestic Savings at current prices increased to 29.1% of GDP & Rate
    of Gross Capital Formation up to 30.1% of GDP.
  * Inflation, as on 11 Feb, 2006, was 4.02%.

Implementing the NCMP Mandate

  * Continued focus on fiscal prudence through increasing revenue & controlling
    expenditure, along with monetary stability.
  * Focus on agriculture is yielding results with the food grain output
... ]]> 84327 Wed, 01 Mar 2006 11:59:22 MSK http://archives.zinester.com/10981/84213.html?rss=1 The Economic Survey 2005-06 was released by the Hon Finance Minister yesterday.
All the newspapers and other internet websites. Hence, I'll not be repeating it
here.

For those who would like to have soft copies of the Economic Survey 2005-06,
here are the links:  All Chapters (.zip file) (http://indiabudget.nic.in/
es2005-06/chapt2006/chapter.zip), All Tables (.zip file) (http://
indiabudget.nic.in/es2005-06/chapt2006/table.zip)







... ]]> 84213 Tue, 28 Feb 2006 10:04:35 MSK http://archives.zinester.com/10981/84065.html?rss=1                   Highlights of the Railway Budget 2006-07

General

  * Freight loading in Apr-Dec 2005 up 10% & freight revenues up over 18%
  * Working expenses to increase by Rs.1,200 crores mainly due to increase in
    fuel prices, lease charges paid for rolling stock (including principal
    repayment which is included in operating expenditure)
  * Accounting system is being changed to reflect the correct operating &
    capital expenditure of lease charges

Technological Upgradation & Modernisation

  * New wagons are high-capacity being designed to enable loads of up to 70
    tonnes
... ]]> 84065 Mon, 27 Feb 2006 11:06:41 MSK http://archives.zinester.com/10981/83639.html?rss=1 SEBI has vide circular no SEBI/CFD/DIL/DIP/18/2006/1 (http://www.sebi.gov.in/
circulars/2006/dilcir3.html) amended the SEBI (DIP) Guidelines, 2000 for
ensuring ECS refunds in 15 centres. Details are available in my earlier post
(http://msm-news-views.blogspot.com/2006/01/
sebi-amends-refund-process-for-15.html) / newsletter (http://
archives.zinester.com/10981/81061.html?sid=95590421f0593c9f230b72a8eee5f0bd) on
this subject.

DP's are now required to update the MICR code and other bank details of the
applicants in their databases to ensure proper refunds through ECS mode. In
view of this, the two depositories (NSDL and CDSL) are required to instruct
DP's to comply with this requirement.

At the same time the DP's are required to suitably amend their bye-laws, rules
and regulations for smooth implementation. DP's are also required to
... ]]> 83639 Thu, 23 Feb 2006 12:37:34 MSK http://archives.zinester.com/10981/83636.html?rss=1 The Directorate General of Foreign Trade (DGFT) has vide Policy Circular No. 48
(http://164.100.9.245/exim/2000/cir/cir05/cir4805.htm)(RE-2005)/2004-2009 dated
10th Febraury 2006 has made the system for remitting licence fee through
Electronic Fund Transfer (EFT) optional till 31st March 2006.

Exporter can remit the licence fees either through EFT payment gateway on the
DGFT Website (http://www.dgft.gov.in ) or submit the licence fees through a
Treasure Challan / Demand Draft.

It is also clarified that mandatory electronic submission with digital
signatures is being continued for the following categories of applications:
Advance Licence (excluding Para 4.7 and DFRC applications), Advance Licence for
Annual Requirement, EPCG Licence and DEPB Licence (for EDI shipping bills).
Applications with digital signatures and EFT payment will be eligible for a 50%
fee concession, while applications with only digital signatures will be
... ]]> 83636 Thu, 23 Feb 2006 12:18:35 MSK http://archives.zinester.com/10981/81061.html?rss=1 SEBI has vide circular no. SEBI/CFD/DIL/DIP/18/2006/20/1 (http://
www.sebi.gov.in/circulars/2006/dilcir3.html)dated 20 January, 2006 amended the
SEBI (Disclosure and Investor Protection (DIP) Guidelines, 2000 to ensure that
applicants residing in 15 centres get IPO / Rights, etc to get refunds through
direct credit (ECS) to their bank accounts. The details of the bank accounts
would be taken directly from their depository details.

Refund orders of value Rs.1500/- or more are required to be sent by registrered
post.

Merchant Bankers have been adviced to change the subscription forms
accordingly.

This amendment is effectively immediately and hence would be applicable to all
issues where the draft offer documents are filed with SEBI on / after 20th
... ]]> 81061 Tue, 31 Jan 2006 20:45:48 MSK http://archives.zinester.com/10981/81060.html?rss=1 The CBDT has notified the BSE and NSE as recognised stock exchanges for the
purposes of the proviso to section 43(5)(d) of the Income Tax Act. Thus, any
derivative trading transaction of these stock exchanges will not be deemed to
be speculative transactions .











... ]]> 81060 Tue, 31 Jan 2006 20:43:59 MSK http://archives.zinester.com/10981/77610.html?rss=1 The CBDT has notified a further extension in the due date for filing of
Quarterly Return of Payment of Interest to Residents without deduction of TDS
to 31 January, 2006. This is for the quarters ending 30 June, 2005 and 30
September, 2005.











... ]]> 77610 Fri, 30 Dec 2005 14:33:23 MSK http://archives.zinester.com/10981/76630.html?rss=1 The CBDT has issued a notification amending the earlier issued 'Equity Linked
Savings Scheme, 2005'.

The first part pertains to the amendment of the definition of 'year'. A year
will now refer to a year commencing from the date of allotment or holding of
units (as against the earlier definition of year meaning an year commencing
from 1st April)

The second part of this amendment inserts a new clause to include open-ended
plans. The Unit Trust or other mutual funds can operate one open-ended equity
linked saving plan, subject to the prior approval of SEBI. The intention it
appears is not to restrict the equity linked saving plans to close-ended
schemes only; and at the same time allow the existing open-ended schemes to
continue to be operational.

... ]]> 76630 Tue, 20 Dec 2005 18:42:21 MSK http://archives.zinester.com/10981/76556.html?rss=1 The Central Council of the Institute of Chartered Accountants of India (ICAI),
has decided to make the Continuing Professional Education (CPE) recommendatory
to the Institute's members who are not in practice with effect from 1st January
2006. Such members who are not in practice are required to earn 10 (Ten) hours
of CPE Credit for the calendar year 2006.










... ]]> 76556 Tue, 20 Dec 2005 17:21:42 MSK http://archives.zinester.com/10981/72041.html?rss=1 The CBDT has vide Notification No 226/2005 dated 3^rd November, 2005 notified
new rules for Equity Linked Saving Schemes.

On the whole, this notification is regressive & will cause more inconvenience
to the investors; rather than benefit them.

The key highlights of this scheme are:

  * Investments to be of a minimum amount of Rs.500 and in multiples of Rs.500
    thereafter

This is a welcome step, since the minimum investment, either in lump-sum or
through the System Investment Plan (SIP) route was Rs.5,000

  * The mutual fund to allot units not later than 31^st March each year. The
... ]]> 72041 Mon, 14 Nov 2005 13:49:21 MSK http://archives.zinester.com/10981/71589.html?rss=1 The CBDT has amended the Income Tax Rules vide Notification No 220/2005 (http:/
/taxmann.com/TaxmannDit/DispCitation/ShowCit.aspx?fn=http://www.taxmann.com/
DitTaxmann/Notifications/IncomeTaxAct/2005/220.htm) dated 3^rd November, 2005.
This amendment allows Recognised Provident Funds to invest in equities & other
securities.

Rule 67 of the Income Tax Rules, 1962, governs the investment avenues available
to a Recognised Provident Fund.

Minimum Investment to be made as under:

                              Investment Avenues
+-----------------------------------------------------------------------------+
|      Investment Avenue       |  Min  |    Moneys received on maturity of    |
|                              | Invt  |  investment made before 1^st April,  |
... ]]> 71589 Thu, 10 Nov 2005 09:10:30 MSK http://archives.zinester.com/10981/71588.html?rss=1 The CBDT has amended the Income Tax Rules vide Notification No 220/2005 (http:/
/taxmann.com/TaxmannDit/DispCitation/ShowCit.aspx?fn=http://www.taxmann.com/
DitTaxmann/Notifications/IncomeTaxAct/2005/220.htm) dated 3^rd November, 2005.
This amendment allows Recognised Provident Funds to invest in equities & other
securities.

Rule 67 of the Income Tax Rules, 1962, governs the investment avenues available
to a Recognised Provident Fund.

Minimum Investment to be made as under:

                              Investment Avenues
+-----------------------------------------------------------------------------+
|      Investment Avenue       |  Min  |    Moneys received on maturity of    |
|                              | Invt  |  investment made before 1^st April,  |
... ]]> 71588 Thu, 10 Nov 2005 09:04:29 MSK http://archives.zinester.com/10981/71578.html?rss=1 The Central Government has vide notifications 222/2005 to 225/2005 and 227/2005
notified the following instruments / schemes as being eligible for section 80C
from the Assesment Years 2006-07.

 1. Public Provident Fund established under the Public Provident Fund Scheme,
    1968
 2. National Savings Certificates (VIII Issue)
 3. ULIP [Dhanraksha 1989] issued by the LIC MF
 4. Specific Schemes of the LIC [ New Jeevan Dhara, New Jeevan Dhara-I and New
    Jeevan Akshay, New Jeevan Akshay-I and New Jeevan Akshay-II Plans]
 5. UTI Retirement Benefit Pension Plan

Note that this does not per se cover the ELSS [Equity Linked Saving Schemes] of
other Mutual Funds. A clarification on this is awaited.

... ]]> 71578 Thu, 10 Nov 2005 05:32:30 MSK